Amid stabbed industrial profit data released last week, the Chinese factory activity had been shrunk, and according to data revealed earlier on December 31st, Monday, the China’s factory activity had contracted for the first time in over two years.
The landslide doom of Chinese factory data was largely lanterned by the bruising trade war with US and a growing risk of sharp economic decline in 2019, as signs of global economic tottering and dwindled demand had already been taken place in several segments.
The escalating muzzling on Chinese factory data had signaled a growing risk of momentum loss in China, adding further strain on the softened global growth and a sharp decline in the demand, as millions of ton of US soybean are rotting in the field and US auto manufacturers started either to halt or deduce their productions.
Global supply chains had already been disrupted by the ongoing trade frictions between US, China and Japan, adding further repercussion on wobbling world trade, scratchy investments and a friable financial market. A Chinese National Bureau of Statistics data revealed on Monday, December 31st, that the official purchasing managers’ index (PMI) fell to 49.4 percent in December, 2018, the first contraction of the factory data since July 2016 and the shabbiest reading since February 2016.